I hear that even though Nuinsco have sold the 3% Cameron royalty, they have NOT extinguished CVY's right to buy back 66% of it in return for issuing $2 million worth of new CVY stock.
That sounds right legally, as CVY would have to agree for the buy back option over the SMR to be extinguished. And if they had done that it would HAVE to be ann'd. And it hasn't been.
Yet the mystery buyer has paid $5.1 million cash for the 3%, which implies they have paid $3.3 million for the 2% of it they may have to give up for $2 million at CVY's election?
If this is correct then the only way it makes sense is that the buyer of the smelter royalty now intends to take out CVY, or knows that someone else is about to that will not claw back two thirds of the SMR from it because they have some side deal in place.
Either way, plenty of rumours are now flying around that are turbo charging the CVY SP.
CVY Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
